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Google Analytics event tracking

Hi everyone. Does anyone here use event tracking in Google Analytics? I'm trying to set that up, and I want to make sure I'm doing it right. The code snippet is easy, of course - you just get that from Google, put in your UA account number, and stick it at the bottom of your<head> section or elsewhere on the page. I'm more worried about getting the onclick part right, on the page you're tracking from. The example they have on the Google help page is

1) of the four elements in brackets, _trackEvent always stays the same, right?
2) According to the Google instructions, there are only two more elements necessary - the category and action - right? Here they would be 'Videos' and 'Play', but they can be named anything, right?
3) can anything be made into the link? Here it's the text Play. But can it also be an entire <div> or an entire <iframe>?